Oman, Russia Sign Agreement To Avoid Double Taxation

Russia and Oman have signed an agreement to avoid double taxation, marking an important step in deepening economic ties between the two countries. 

The agreement aims to prevent individuals and companies from being taxed twice on the same income or profits in both Russia and Oman.

The signing of this agreement reflects the growing trade relationship between Russia and Oman. 

Deputy Finance Minister Alexei Sazanov highlighted the significant growth in mutual trade between the two countries, which saw a 46% increase in volume in 2022. 

Sazanov expressed the need to further enhance trade turnover and strengthen economic cooperation.

This agreement holds particular significance as Russia has recently proposed suspending its double taxation agreements with “unfriendly countries” that have imposed sanctions on Moscow due to its invasion of Ukraine. 

By signing this agreement, Oman reaffirms its commitment to fostering economic cooperation with Russia, even as tensions persist between Russia and some Western nations.

Avoiding double taxation is crucial for promoting investment and trade between countries. The agreement provides certainty and stability for businesses and individuals by clarifying their tax obligations. 

It eliminates the risk of being taxed on the same income or profits in both jurisdictions, which can discourage cross-border activities.

The agreement is expected to boost economic relations between Russia and Oman by encouraging investment and facilitating trade. 

It will provide a favorable environment for businesses from both countries to engage in cross-border transactions, expand their operations, and explore new opportunities.

The move aligns with Oman’s broader efforts to attract investments and maximize returns from various sectors, including mining. 

The country is working on the optimal utilization of minerals and conducting pre-feasibility studies to increase the mining sector’s contribution to the GDP. 

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Oman aims to diversify its sources of national income by leveraging its mineral resources and encouraging the establishment of industries that rely on minerals.

The agreement to avoid double taxation between Russia and Oman reflects their commitment to strengthening economic ties and creating a conducive environment for trade and investment. 

It will provide greater certainty and facilitate business activities, contributing to the economic development of both countries.